US, Qatar Plan To Release $6 Billion Of Frozen Iranian Funds Initially

The US is exploring options with Qatar to release billions of dollars in frozen funds to Iran for humanitarian spending, according to a report.

This is part of the early financial incentive discussed under the recently signed peace deal to end the war, The Wall Street Journal reported.

As per the US-Qatar initiative, Iran will be provided access to spend some of its estimated $100 billion in cash frozen worldwide. The fund release will begin with $6 billion held in Qatar, according to the report.

The pact would enable Qatar to facilitate Iran’s purchases of “food, medicine and other humanitarian goods ordered by Iran’s central bank.”

The US and Iran are exchanging communication about the release of frozen Iranian funds, as part of a memorandum of understanding to halt the war, Reuters reported earlier this month.

Iranian sources told the outlet that a political understanding has been reached, but there are some details still being discussed, particularly related to the mechanism to release the funds from foreign banks.

Iran is seeking $6 billion to $12 billion of its frozen funds to be released , while Washington wants to “release funds in ​stages and rejects returning funds to Iran outright,” one of the people with knowledge of the matter said.

The WSJ report said Iran is yet to agree to the proposal. The talks on finalizing a deal have met with uncertainty after Israeli airstrikes that reportedly killed nearly more than a dozen people in Lebanon, CNBC reported.

US envoy Steve Witkoff is reportedly traveling to Switzerland for technical talks with Iran. President Donald Trump’s son-in-law Jared Kushner is already in Switzerland and is expected to join Witkoff as renewed efforts to cement a deal began, Axios reported.

The Israeli action also resulted in postponement of the talks between Iran and the US scheduled in Switzerland, with US Vice President J D Vance’s planned trip put off.

“They are one of the few concrete incentives Iran can secure with Washington to stabilize its currency and ease domestic economic pressure,” Sanam Vakil, Middle East director at Chatham House, a London think tank, told WSJ.

Iran’s Supreme Leader Mojtaba Khamenei said in a post on X on Thursday that US agreed to suspend hostilities “out of desperation.”

The post triggered a furious response from Trump in Truth Social. “We didn’t meet out of desperation, Iran did. They are FINISHED! We’ll play out the 60 days. They get no money, not ten cents!”

The US initiative with with Qatar is likely in addition to the billions of dollars Iran is expected to earn from oil sales. The US has agreed to waive sanctions and issue authorisations to facilitate the transactions that could pave the way for the utilization of frozen funds by Iran.

A $300 billion private fund to invest in Iran is included in the memorandum of understanding between the US and Iran to end the war and kick off nuclear negotiations, Reuters reportd ealier this week. The news outlet said the fund is a private investment vehicle, rather than a reconstruction or reparations program, and would not include government funding.